Shift to Service Company
Microsoft is planning to acquire LinkedIn for US$26.2 billion, which is the largest amount in its M&A history.
Microsoft took over Skype and the mobile phone division of Nokia for US$8.5 billion and US$7.2 billion, respectively. Its acquisition of LinkedIn is expected to result in its greater presence in the SNS market as well as the cloud computing market.
At the same time, it is likely to turn Microsoft into one of the biggest rivals against Salesforce in the field of customer relationship management software targeting sales personnel. In other words, Microsoft is predicted to obtain HR tools and business networks by acquiring LinkedIn after its domination of IT infrastructure for corporate management by means of the Windows and the Microsoft Office.
In the meantime, Microsoft recently formed a strategic alliance with SAP, one of its rivals in the software market. MS is increasing its investment in startups as well. It recently established MS Ventures by expanding the financial assistance arm of the Microsoft Accelerator. This is to absorb innovative technology and ideas from startups in the sectors including cloud computing, information security and machine learning.